SBI Car Loan | Interest rates | Eligibility | Documents

SBI Car Loan | Interest rates | Eligibility | Documents | Apply

SBI Car Loan: State Bank of India Car Loans offer low interest rates, Processing Fee, easy repayment options, total transparency, no processing charges, finance to include vehicle registration charges, insurance and one time road tax. In case of new cars, loan is provided on any make or model. In case of old cars too, the loan is provided on any make or model, but the vehicle should not be more than 5 years old.

Advantage:

Lowest car loan interest rates
Longer repayment period of up to 84 months.
No hidden costs or administrative charges.
Finance for one-time road tax, registration fee, insurance premium and accessories
No advance EMIs. (Some Banks/companies ask you to pay one or more EMIs at the time of disbursement of loan, thereby effectively reducing your loan amount.)

Complete transparency: SBI levy interest on daily reducing balance method. When you pay one installment, the interest is automatically calculated on the reduced balance thereafter. When you pay interest on an annual reducing balance, as charged by many other companies/banks, the interest amount for the coming year is determined on the amount outstanding at the beginning of the year. You continue to pay interest even on the amounts you repay during the year.

Good service

Eligibility:

Individual between the age of 21-65 years of age.
A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or
A Professionals or self-employed individual who is an income tax assessee or
A Person engaged in agriculture and allied activities.
Net Annual Income Rs. 100,000/- and above.

Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse’s income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration plus insurance.

No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

Type of Loan

1. Term Loan

2. Overdraft – a) For New vehicles only

b) Minimum loan amount: Rs. 3 lacs.

Documents Required

You would need to submit the following documents along with the completed application form if you are an existing SBI account holder:

Statement of Bank account of the borrower for last 12 months.
2 passport size photographs of borrower(s).
Signature identification from bankers of borrower(s).
A copy of passport /voters ID card/PAN card.
Proof of residence.
Latest salary-slip showing all deductions
I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted.
Proof of official address for non-salaried individuals.

If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence.

Repayment

SBI offers the longest repayment period in the industry.

Repayment period:

For Salaried: Maximum of 84 months

For Self-employed & Professionals: Maximum 60 months

Repayment period for used vehicles: Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above).

Prepayment Penalty

Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions.

Processing Fee

0.50% of Loan amount to be paid upfront.

Minimum: Rs. 500/-